Case Studies
"A satisfied customer is the best business strategy of all”
— Michael LeBoeuf
We demonstrate the value of our capital solutions through the outcomes we help our clients achieve. With over $20 billion invested across middle-market companies, Tenet is one of the most experienced net lease capital providers in the U.S.—and our track record speaks for itself.
Corporate Recapitalization: PE-backed Manufacturing Company
Tenet acquired three R&D and electrical component manufacturing facilities in the Northeastern U.S. Proceeds from our transaction were used to fund capital expenditures and reduce third-party borrowings – representing a lower cost replacement for debt and investor equity.
Corporate Recapitalization: Publicly Traded Pharmaceutical Company
Tenet acquired one pharmaceutical manufacturing facility in the Southeastern U.S. from a publicly traded contract development and manufacturing organization in concert with a broader corporate recapitalization. Facing a pending debt maturity, Tenet addressed a capital gap that would have otherwise been filled with costly investor equity or restrictive debt. Our transaction materially improved capital and asset efficiency while enhancing corporate flexibility.
Catch & Re-Lease Transaction: Infrastructure Service Company
Tenet acquired four facilities in the Southeastern U.S. operated by an infrastructure service company for approximately $10 million. A “catch & re-lease” is a transaction wherein Tenet acquires existing properties from a third party-landlord, and simultaneously leases those same properties back to the customer in a new, separate arrangement.
Catch & re-lease strategies offer numerous potential benefits to the customer including (i) cash generation through the realization of a profit in the amount of the difference between the price struck with the third-party seller and Tenet’s ultimate purchase price, (ii) a rent reduction to improve operating cash flow, or (iii) replacing a traditional landlord with a more dynamic, long-term capital partner.
In this case – the Properties were acquired from multiple third parties and simultaneously leased back to the customer under a new contract. Facing near-term lease maturities, Tenet crafted a solution that allowed the customer to maintain operational control of these important sites while securing a source for add-on acquisitions and improvement funding at the Properties. The relationship with this customer continues to expand with their programmatic M&A-driven growth.
Add-On M&A Transaction: PE-Backed Auto Service Platform
Tenet provided sale-leaseback capital to acquire 22 auto service centers in Texas in connection with the acquisition of business operations at the Properties by a leading auto service platform backed by a consumer-focused private equity firm with $10 billion AUM. Tenet’s proceeds resulted in the formation of a more efficient acquisition capital stack, improving return on investor equity, lowering the EBITDA multiple paid and elevating operational flexibility.
Corporate Carve-Out: PE-Backed Manufacturing Company
Tenet provided sale-leaseback capital to acquire 5 manufacturing facilities in the midwestern U.S. concurrent with the acquisition of associated business operations by a leading middle market private equity firm (the “Sponsor”) in a corporate carve-out transaction. Proceeds from our transaction were used to help capitalize the acquisition, reducing the Sponsor’s required equity investment and effectively lowering the multiple of EBITDA paid for the business
